SMRA is one of the best property developers in the country. Well run company with strongest brand and good track record of execution. See attached for details.

Key Points from the report:

· Marketing sales have been robust lately, with 8M11 sales expected at ~Rp2tn, which is 87% of FY11 target of Rp2.3tn.
· As such, SMRA will raise its sales target to Rp2.6tn (20% YoY from 10% YoY before).
· SMRA also mentioned that if they decide to do four more launches (two in Serpong, and two in Bekasi), then sales may be able to achieve Rp2.8tn (29.6% YoY)
· Land price appreciation very robust. First cluster launched last year was done at Rp1.9m psm in Bekasi. The next launch will see land price raised to Rp3m psm.
· Shop-house demand remains super strong. Land price for shop-house has effectively doubled YoY to Rp11m psm. SMRA is confident company can charge same price in Bekasi!
· Almost ready to launch Serpong Mall part 2 (another 50k sqm) next month. 80% of the space has already been leased out.
· SMRA currently trades at 16% discount to its NAV. Always a bit pricey vs. peers, but delivering superior returns to investors (ROE 15% FY11).